British Stocks May Bear Brunt
Of Rising Rates, Strong Pound

LONDON -- British stocks face hard times ahead as worries of rising inflation, rising interest rates and a strengthening pound make investors nervous.

Last week's inflation report sent stocks sliding, which compounded the Bank of England's decision to raise interest rates the previous week. Add to that the coming U.K. budget announcement at the end of this month, and British stocks are set for a rough ride.